-13--
f)
the non-discriminatory imposition of
restrictions by other countries under Article XIX would adversely affect our exports to those countrics; g) there is in any case nothing to prevent the importing and exporting countries entering into a bilateral agreement under Article XIX without reference to the view of other contracting parties.
28.
It may be thought that a provision which some regard as too rigid and others regard as too flexible is not entirely without retit. It is true that Article XIX has mainly been used by the United States to deal with minor cases of market disruption in the case of cafety pins, clinical thermometers, etc., but it is doubtful whether the draftsmen intended it to become a dead letter in cases of serious difficulty affecting a large area of international trade. The implied alternative is that we should tolerate a situation in which almost all developed countries would impose discriminatory restrictions on imports of textiles from the developing countries without payment of compensation. This would certainly avoid the need for having to take up a position in the G.A.T.T., but it would clearly be inconsistent with the objectives proposed in paragraphs 8-12 above because the United Kingdom would torty be unable to resist the increasing pressure to impose restrictions on imports of low-cost textiles from, in particular, Hong Kong and Portugal.
The advantages of Article XIX
29.
The virtue of Article XIX is that any action taken to prevent or remedy serious injury is subject to a measure of international control and must be applied non-discriminatorily. Indeed, in most cases the rule of non-discrimination is likely to be a much more important deterrent than the practice of offering compensation to exporting countries having a substantial interest in the trade, useful though this is. The difficulty which has always arisen and will continue to arise in the interpretation of any escape clause is what constitutes serious injury to domestic producers of like or directly
/competitive